RIM to cut about 5,000 jobs; delays BlackBerry 10 launch

RIM to cut about 5,000 jobs; delays BlackBerry 10 launch

BlackBerry-maker Research in Motion has said it will cut around 5,000 jobs as part of a restructuring plan and also announced delay of the launch of its new phone operating system -- BlackBerry 10, until the first quarter of 2013.

The company which posted results for the latest quarter said restructuring efforts are underway that will include a workforce reduction of around 5,000 employees.

This is part of its efforts to realise over $1 billion in cost savings and is expected to be completed by the end of fiscal 2013, it said.

"The company expects to incur restructuring related charges of around $350 million by the end of fis

"The company expects to incur restructuring related charges of around $350 million by the end of fiscal 2013, primarily associated with the global workforce reduction," the statement said.

Revenue for the first quarter of fiscal 2013 stood at $2.8 billion, down 33 per cent from $4.2 billion in the previous quarter and down 43 per cent from $4.9 billion in the same quarter of fiscal 2012.

During the quarter, RIM shipped 7.8 million BlackBerry smartphones and around 2,60,000 BlackBerry PlayBook tablets.

RIM to cut about 5,000 jobs; delays BlackBerry 10 launch

Shares of the company tanked as much as 14 per cent after the release of the results and the announcement about the delay of the BlackBerry 10.

The company said it expects challenges in the coming quarter.

"The company expects to report an operating loss in the second quarter of fiscal 2013, as RIM continues to invest in marketing programmes and continues to work through the transition to BlackBerry 10, as well as the company's fixed costs being allocated over a lower volume of shipments," the statement said.

Image: A man tests a BlackBerry phone at a shopping mall.Photographs: Mosab Omar/Reuters